Aurion Amends Logan Pass Agreement
Aurion Resources Ltd. (“Aurion”) (TSX VENTURE: “AU”) reports that it has amended the underlying Logan Pass lease with an option to purchase agreement with Genesis Gold Corp. (“Genesis”). Under the terms of the original agreement (See Aurion press release dated Nov.9, 2010), Aurion has a 15 year lease with an option to purchase a 100% interest in 8 unpatented claims, subject to a 2% NSR. Pursuant to the agreement, the consideration payable by Aurion for the lease to purchase option are by making annual cash payments starting at US$25,000 increasing to a maximum US$125,000. Genesis has agreed to accept reduced payments over the next three years. The option to purchase can be executed at any time by making a one-time US$3 million cash payment less any payments already made. Genesis shall retain a 2% NSR on the Logan Pass Property.
|Revised Payment Schedule|
|Date:||Original Payment||Revised Payment|
|Upon signing Letter Agreement||US$25,000||US$25,000||(paid)|
|On or before Oct 12, 2011||US$30,000||US$30,000||(paid)|
|On or before Oct 12, 2012||US$40,000||US$40,000||(paid)|
|On or before Oct 12, 2013||US$65,000||US$40,000||(paid)|
|On or before Oct 12, 2014||US$80,000||US$40,000|
|On or before Oct 12, 2015||US$125,000||US$65,000|
|On or before Oct 12, 2016||US$125,000||US$125,000|
Aurion will also issue 200,000 shares, subject to regulatory approval, as consideration for the amendment.
About Logan Pass
The Logan Pass gold property is located in Lincoln County, SE Nevada, approximately 150 km north of Las Vegas. The property comprises 252 unpatented claims and hosts oxidized, Carlin-style, gold-bearing, bedding-replacement jasperoids at the surface within flat-lying silty carbonates of the Pogonip Group. The property also hosts base metal-rich replacement zones (tactite) and veins as well as bedding replacement manganese deposits. The property was briefly explored for gold in the early 1990s with no further exploration until Aurion’s recent exploration campaign, beginning in 2010.
In 1992-93, BHP Minerals, sampled 2.8 g/t Au over 21.3 m including 5.4 g/t Au over 6.1 m and 7.3 g/t Au over 3.05 m from surface exposures of oxide gold mineralized jasperoids and jasperoid breccias. BHP subsequently drilled 15 widely spaced, reverse circulation drill-holes in a reconnaissance effort to test the jasperoids along the projected mineralized horizon. In total, seven of the BHP drill-holes encountered oxide gold mineralization over an area of approximately 450 m by 150 m at depths of less than 25 m below surface. The best reported intersections include 2.3 g/t Au over 7.6 m, starting at 5 m below surface and 1.5 g/t Au over 9.15 m starting at 7 m below surface. The mineralization is generally open but appears to be fault-offset (down-dropped) to the west. Aurion’s rock chip sampling from the Main Jasperoid area returned 13.5 g/t Au over 2.0 m, and 7.2 g/t Au over 5.8 m. All samples have elevated Carlin-style As-Sb-Hg-Tl geochemistry. No further drilling has been conducted at the Main Jasperoid since the BHP campaign.
In 2012 Zonge Geophysics was contracted to complete a CSAMT and IP geophysical survey centered on the Main Jasperoid in the southern portion of the property. The data, subsequently reviewed by Jim Wright, Consulting Geophysicist, indicate the presence of a narrow (<100 m), arcuate, high angle, low resistivity feature, that may be a possible “feeder” to the mineralization at the Main Jasperoid. This “feeder” diminishes upon approaching the surface and coincidentally parallels the east flank of the Main Jasperoid over a distance of at least 400 m. It has not been tested by the historical drilling.
Approximately 6 km NNE of the Main Jasperoid in the northern part of the property, the Southpaw prospect area was explored and developed for manganese deposits which occur as pyrolusite replacement lenses. Historical production documented from these manganese deposits during the 1950s are reported to average 36% Mn (Nevada Bureau of Mines).
During property reconnaissance Aurion sampled outcrop exposures and old workings within jasperoid and jasperoid breccias along steeply-dipping structures and bedding-parallel replacement lenses associated with manganese, silica and carbonate alteration within carbonates at the contact with the underlying Eureka Quartzite. Assays up to 19.3 g/t Au were returned from sampling of old workings and pits at Southpaw. Follow-up chip-channel sampling, over an area of 250 m (NW-SE) by 225 m (E-W) returned a best individual result of 3.7 g/t Au over 1.0 m, and a best length-weighted average result of 2.6 g/t Au over 4.0 m. The average of 23 samples was 1.2 g/t Au over an average width of 1.3 m. All the samples yielded elevated Carlin-style As-Sb-Hg-Tl geochemistry. Aurion interprets this mineralization as leakage from below the Eureka Quartzite, which may act as a cap rock to more significant mineralization within the favourable Pogonip carbonates which underly the Eureka.
A soil geochemical survey over Southpaw, covering an area of approximately 3 km N-S by 1.5 km E-W targeting the contact between the Eureka Quartzite and the carbonates stratigraphically below revealed anomalous gold and associated Carlin-style geochemistry in soils over much of the grid, supporting the potential for additional mineralized zones in favourable carbonate host rocks beneath the overlying Eureka Quartzite.
Aurion has now documented gold mineralization in the Southpaw area over a distance of greater than 1.8 km.
Geological Setting of the Logan Pass property
Reconnaissance mapping indicates that much of the relatively flat-lying Pogonip stratigraphy may be preserved on the property. The surface mineralization at Southpaw sits stratigraphically above the Main Jasperoid horizon which is hosted in the lower unit of the Pogonip, as is the mineralization at Archimedes and some of Long Canyon’s mineralization.
The Logan Pass geological setting, with flat-lying bedding-replacement gold mineralization hosted by favourable rocks of the Pogonip Group, occurs proximal to base metal-vein and -replacement mineralization in tactite, and is directly analogous to several deposits and prospects in the Battle Mountain-Eureka trend, particularly the multi-million ounce Archimedes-Ruby Hill deposits.
Aurion is currently completing a Plan of Operations to see approximately 50 acres for multiple drill hole locations and access roads fully permitted in the Main Jasperoid and Southpaw areas.
Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of this release.
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Companies’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and Aurion is not obligated to update or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward looking information contained herein.
On behalf of the Board,
President & CEO
For further information on Aurion Resources please contact: Mike Basha at (709) 699-8300 or firstname.lastname@example.org
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